Broadcom, a major player in the semiconductor industry, is on the verge of releasing its fourth-quarter earnings, with analysts closely monitoring the company’s performance. The earnings report is anticipated to be disclosed after market close on Thursday, and predictions indicate that the tech giant will report an earnings per share (EPS) of $1.86, adjusted revenues of approximately $17.49 billion. This figure signifies a substantial increase, with Wall Street forecasting a 25% rise in overall revenue for the quarter ending in October, compared to $14.05 billion in the same period last year.
Looking ahead, analysts are projecting an adjusted EPS of $1.95 and sales reaching $18.27 billion for the upcoming quarter. This optimism is underpinned by Broadcom’s strategic positioning to seize opportunities in the rapidly expanding AI infrastructure sector. The company’s custom chips, referred to as XPUs, along with advanced networking technology, are critical for the construction of expansive data centers that facilitate the operation of numerous AI chips in harmony.
Broadcom’s stock has soared to record levels, experiencing a remarkable 75% increase in 2025 alone, reflecting increasing confidence in its ability to compete with rivals such as Nvidia in the AI chip market. The company’s market capitalization now stands at an impressive $1.91 trillion. A notable development during this quarter was Google’s launch of its latest AI model, Gemini 3, which was exclusively trained on Broadcom’s tensor processing unit (TPU) chips.
OpenAI, another significant customer for Broadcom, has announced plans to implement custom AI chips developed in collaboration with the company starting next year. This partnership further solidifies Broadcom’s influence in the AI space.
During the upcoming earnings call, CEO Hock Tan is expected to elaborate on Broadcom’s pipeline of AI chips and its collaborations with industry partners. Analysts, including Goldman Sachs’ James Schneider, anticipate that investor discussions will center around fiscal year 2026 AI revenue guidance, contributions from Google and OpenAI, as well as the projected gross margin trajectory associated with the anticipated growth of custom XPUs. Schneider has indicated a buy rating on the company’s stock, reflecting a bullish outlook as investors brace for the forthcoming earnings announcement.
